NEWS
DEMAND FOR CBD SOARS DURING LOCKDOWN THE ASSOCIATION FOR the Cannabinoid Industry (ACI) and Centre for Medicinal Cannabis (CMC) has launched Green Shoots – Sowing the Seeds of the New UK Cannabis Industry report with a new assessment of the size of the UK consumer cannabidiol (CBD) market. The sector is now estimated to generate £690m in annual sales for 2021. This figure surpasses predictions made in the seminal market-sizing study undertaken by the CMC in 2019 which estimated the market would be worth £526m in 2021.
The report concludes that the UK now has the most evolved regulatory framework in the world for CBD, and other consumer cannabis extracts, citing recent interventions by the Foods Standards Agency – to regulate products as dietary supplements, and to consider what are safe and tolerable levels of THC contained in products. However, the report calls for more government intervention and investment to ensure that the UK optimises what it describes as “Britain’s quiet cannabis revolution”. The report claims that, due to domestic restrictions on hemp cultivation and processing in the UK, the bulk of the profits for this industry is going overseas. This is because UK farmers must destroy the parts of the hemp crop which lucrative CBD is extracted from. The report argues that the market represents a key growth sector for the UK and it is time for the government to adopt a proactive strategy to seize opportunities in the cannabinoids sector. The report makes 20 recommendations drawing on a submission recently made to a new governmental taskforce on innovation, growth and regulatory reform, established by British Prime Minister Boris Johnson in February, to stimulate post-COVID economic growth. •
ANUFOOD CHINA 2021 CELEBRATES A SUCCESSFUL EVENT SOUTH CHINA’S F&B industry is celebrating a much-needed boost with the successful conclusion of ANUFOOD China, which was held between 21 and 23 April 2021 in Shenzhen. ANUFOOD China 2021 spanned more than 20 000m 2, featuring a host of products under its roof including sweets and snack foods, staple foods and condiments, beverages, meat, organic food, dairy products, seafood and aquatic products, fruits and vegetables, and F&B services. With 460 exhibitors hailing from 34 countries and regions, the stands featured over 2 000 brands with 19 773 trade visitors during the three-day period. The inaugural edition saw heartening industry support in the form of country pavilions from Germany, Ireland, Poland, Greece, South Korea, the United Kingdom, Czech Republic, Uruguay, Tajikistan and Indonesia. In addition, to serve international exhibitors who were unable to physically attend the exhibition, the Virtual Plus business platform on-site was equipped with professional bilingual staff that could facilitate communication with buyers online, and in real time. Exhibitors from Poland, the US, Lithuania, Portugal, Belgium, Argentina, Russia, Brazil, Ukraine, Turkey, Cyprus, South Korea, Japan, Singapore, Pakistan, Vietnam, Sri Lanka, Tajikistan, Hong Kong and Macao
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(Macau) made full use of this service to live stream their product offerings. Visitors enjoyed as many as 30 conference sessions, cooking competitions, customised F&B tasting experiences, covering hot topics of the entire industry, and providing a more diversified showcase and interactive experience. As a supporting value-added service tailored to exhibitors’ and buyers’ needs, the on-site business matchmaking programme was made up of an exhibitor-led segment based on product categories, and an invited buyer-driven segment by market channels. More than 1 100 meetings were held during two days in the matchmaking area, playing its hand as a catalyst for the region’s economy. •
Food Manufacturing Africa | 2021 Quarter 2
SAB LISTS B-BBEE SCHEME WHICH WILL OWN R5.4 BILLION WORTH OF AB INBEV SHARES THE SOUTH AFRICAN Breweries (SAB) has announced that its latest B-BBEE scheme, SAB Zenzele Kabili to list in May 2021. At a special virtual special general meeting held for members of its current B-BBEE scheme, SAB Zenzele, a quorum was secured with 8 339 shareholders casting their votes and 95% of the shareholders who voted, voted in favour of the new scheme, satisfying the requirement for listing. The SAB Zenzele Kabili scheme, which replaces SAB Zenzele, will own R5.4 billion worth of AB InBev Shares, the world’s largest beer maker. SAB Zenzele Kabili will be listed on the B-BBEE Segment of the Johannesburg Stock Exchange (JSE) to facilitate liquidity and broaden ownership to other B-BBEE investors, including qualifying SAB employees through a new employee stock ownership plan. The qualifying public will be able to trade from the listing post on the 28 May 2021, through a JSE broker or existing trading platform. The listing price is set at R 40 per share. SAB Zenzele shareholders have been given the option to reinvest a minimum of 63.5% or all of their remaining proceeds into the new scheme. Those who do so will henceforth become global shareholders, receiving 25% in dividends annually, without having to wait ten years before being able to sell shares or get paid out. Additionally, SAB Zenzele Kabili shareholders will be able to trade immediately after listing. SAB employees will need to wait five years before being able to trade. SAB Zenzele which will reach maturity in May 2021, is the largest B-BBEE scheme in the history of South Africa in the fast-moving consumer goods sector, having reached a total maturation value of R9.7 billion. Launched in 2010, the landmark SAB Zenzele transaction endeavoured to give our retailer partners – taverners, bottle store owners, retailer customers and our employees, the life blood of SAB’s business, an opportunity at real ownership in a company that has brought South Africans together for over 125 years. Retailer shareholders who invested R100 in 2010 will have received a total pre-tax pay- out of R77 518 when the transaction fully unwinds later this month. SAB Zenzele Kabili was envisioned to launch in April 2020. However, COVID-19 driven restrictions prevented the necessary shareholder AGM from taking place, and as such, the plans were postponed. While SAB Zenzele was a fixed term scheme, SAB Zenzele Kabili is perpetual and will remain listed indefinitely. Company secretary Duncan Pask comments, “We are thrilled that the SAB Zenzele shareholders voted in favour of the new B-BBEE scheme. SAB Zenzele Kabili is set to deliver even more value over time, and we look forward to continuing to generate wealth for all of our retailer partners, employees and qualifying members of the public who invest in the scheme.” •
